Q. Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates?

A) Financial Deficit Management

B) Capital Account Convertibility

C) Restrictive Trade Practices

D) Mimimum Support Price

✔ Correct Answer: Capital Account Convertibility

Exam Insight

Capital account convertibility is the policy designed to transfer local financial assets into foreign financial assets freely and at market-determined exchange rates.

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Q. Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates?

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